Are Past Due Phone Bills Reported to the Credit Bureaus?

Some cell phone users purposely miss payments, because providers often do not report late payments to the credit bureaus. In 2011, however, this plan could backfire, because some cell phone providers have the ability to report payment history to the credit bureaus. Consumers should pay their bill on time either way, because delinquent accounts can be referred to collection agencies.

Identification

Traditionally, the major cell phone providers have not reported customer payment histories to the credit bureaus, because of the added expense and consumer privacy laws. Some providers, such as Verizon, report late payments to the credit bureaus in states that allow it to get slow paying customers to pay on time every month.

Collections Account

Regardless of whether the cell phone provider can or will report late payments to the credit bureaus, delinquent payments can still show up on a credit report if the account is referred to a collection agency. Collection accounts are almost always reported to the major bureaus, so expect to see one if you do not pay your bill for several months.

Effect

If you have excellent credit, a past due cell phone bill or an account referred to a collection agency can drag you down to good to average credit and increase the cost of future loans and ability to get a job and apartment. CNN reports that a single late payment can cost 40 to 110 points and a 90-day late payment 70 to 135 points.

Tip

Consumers who are chronically late on their cell phone bills should monitor their usage more closely to reduce their payment, suggests Becky Worley of ABC News. You could honor the rest of your contract, decline to renew and go for a cheaper plan. Using a prepaid cellphone eliminates late payments all together, because you can only use as many minutes as you purchase in advance.